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Cyprus
The Republic of Cyprus is a Eurasian island country located in the eastern part of the Mediterranean Sea. From 1 May 2004 it is a member of the European Union, from 1 January 2008 also a member of the euro area.
By joining the EU, the tax benefits for foreign companies ended, but Cyprus is still trying to attract foreign companies. Cyprus is now referred to as the country of tax incentives. It has, for example, the lowest income tax in the EU.
Capital: Nicosia (Lefkosia)
Official language: Greek, Turkish
Currency: EUR
Business in Cyprus - Cypriot jurisdiction benefits
By joining the EU, tax benefits for foreign companies ended, but Cyprus is still trying to attract foreign companies. Cyprus is now referred to as the country of tax incentives, for example, it has the lowest income tax in the EU.
General meeting of shareholders can be arranged anywhere in the world, from a tax point of view, however, it is convenient to organize it in Cyprus.
| The legal form of the company | Private Company Limited by Shares (Ltd.) Companies have an obligation headquartered in Cyprus |
| Legislation | English common law (Common Law) Companies Law Cap. 113 The Income Tax Laws of 2002 |
| Time needed for company formation | Usually within two weeks, if all documents are submitted on time, document delivery in 4 weeks. |
| Shareholders | 1-50, natural or legal person, may be non-resident |
| Directors | Minimum number of directors: 1 Minimum number of secretaries: 1, natural or legal person, may be non-resident Note: For tax purposes, local executive and secretary is suitable |
| Share capital | The minimum amount is not determined |
| Bearer shares (bearer) | No |
| Taxation | The tax rate on corporate income: 10% Withholding taxes: not burdened dividends, interest, royalties, gains on sales of securities Mandatory registration for VAT a) with a turnover of 15 600 EUR in the previous twelve months b) with a turnover of more than 15 600 EUR is expected in the next 30 days. The Czech Republic entered into an agreement for the avoidance of double taxation |
| Bookkeeping | Required - companies are obliged to submit financial statements |
| Audit | Audit conducted by a local auditor is required |
| Anonymity and confidentiality | Index of companies, directors and shareholders is publicly accessible |
The most common use of Cypriot companies
- International trade in goods and services
- Lending and borrowing
- Holding and leasing intellectual property (patents, software, know-how, etc.)
- Holding company